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Brazil's industrial production (IP) rose in July as the locals got back to work following a month long FIFA World Cup. But that doesn't have investors turning bullish. At best, Brazil remains a neutral call, with day trades continuing to speculate that next month's presidential election bodes well for a change in economic policy.

July industrial production rose above consensus estimates to 0.7% month over month. Consensus was for IP to increase by 0.5% following the 1.4% drop in June.

Compared to last July, though, Brazil is hardly firing on all four cylinders. IP in Brazil is down 3.5% from last year and year-to-date is already down 2.8% from the same period in 2013.

Just before noon in New York, the iShares Brazil (EWZ) exchange traded fund trimmed 1.28%, making it the worst performing BRIC market ETF today.

--The iShares MSCI Brazil ETF became the worst performing BRIC market on Tuesday following release of industrial production data. Brazil remains a political risk play as elections get underway next month.

Sector-wise, capital goods rose 16.7% from June levels after contracting by 12.7% that month, while durable goods increased 20.3% over June, following a 22.2% decline in the previous month's reading.

Marcelo Solomon, an economist for in New York, said that after the IP data, their in-house third quarter GDP tracker now points to flat growth. That would imply July's GDP edged up maybe 0.5% after declining 1.5% in June.

Solomon said BarCap's forecast for Brazil's real GDP in the third is around 0.1% over the second quarter. However, he warned in a note to clients Tuesday morning that both business and consumer sentiment remain sour, which "fails to support signs of a meaningful recovery trend taking place prior to the October elections."